JP Power sells Bina plant to JSW Energy

Jaiprakash Associates’ power arm Jaiprakash Power Ventures has agreed to the sale of its Bina Thermal power plant to JSW Energy on July 18 at the end of the day. The acquisition amounts to the basic enterprise value of about Rs 2700 crores subject to mutual negotiations if required.

On July 19, the stock of JP Power opened up and hit 6.2 Rs mark with 1.6 per cent upside. JSW Energy traded on a flat to positive note at Rs 80.10.  Jaiprakash Associates surged 2.7 per cent at Rs 11.33.

On September 8, 2015 JSW Energy had signed a memorandum of understanding with JP Power to buy the plant. JSW Energy will acquire a coal based thermal power plant with 500MW capacity located at Bina, District Sagar in Madhya Pradesh. JSW Energy would consider acquisition of 100 per cent equity in Minerals and Energy Swaziland (pty) Limited.

JSW Energy aims at increasing its power generation capacity to 6031MW including the proposed acquisition of JSPL’s power plant with 1000MW capacity. JSW Energy can diversify its geographical presence and also fulfil its fuel source.

The Bina plant's special purpose vehicle has two units (2*250MW), wherein the projects have already commenced and have been fetching revenues of Rs 2969.73 crores since last three years.